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Attorneys of the Philippines Legal News

Welcome to our legal news pages. Here is where we provide updates about what's happening in Philippines legal news, and publish helpful articles and tips for Pinoys researching legal matters.

Regulation Of Ride-Sharing Services Explained

The hustle and bustle of the city, people toing and froing and infrastructures here and there are all signs that the country has been growing rapidly. With the demands that this rapid growth entails, it is imperative to maintain a fast and steady pace. Traffic jams are a daily sight for urban settlers. In fact, it marks another busy day in the city. Catching a ride that will take you to your destination the earliest possible time is such a challenge as there are also hundreds of passengers parading like ants trying their best to make it to their destination. With the regulation of ride-sharing services, Pinoy commuters need not wait for agonizing hours to catch a ride. 

Public convenience is the main objective of Department order 97-1097 and it aims to improve transport service so it will be more accessible to the commuting public. It has effectively merged transport services and the modern advances in technology so the commuters will find it easier to get to their destination. People can download apps such as Uber to get a ride conveniently. Since this order modernizes the traditional way of commuting, passengers will find it convenient to travel from one place to another. 

These transportation services are online-enabled and it works by connecting drivers to customers requesting a ride. It also allows potential customers to browse through a list of registered vehicles. The transaction is completed once the driver receives the request and the customers are taken to their destination. 

The amendments covered for transportation network vehicle service include: 

Route: No fixed route

Vehicle type: Sports Utility Vehicle, Sedan, Asian Utility Vehicle, Van and other similar vehicles. 

Ventilation: air-conditioned

Seating capacity: should not exceed 7 passengers excluding driver

Mode of payment: pre-arranged

Fare: Based on TNC, it is subject to oversight from LTFRB following various circumstances such as national or local emergency, power shortage, civil disorder etc. 

Operation Conditions: 

Driver must have a professional driver's license;

Driver must be registered with LTFRB;

Driver must be TNC accredited;

Vehicle must be TNC accredited;

Vehicle must be 3 years old or below from the date of manufacture;

Age limit of vehicle must not exceed to 7 years from the date of manufacture;

Vehicle must be equipped with necessary tools;

Driver must have online-enabled digital device for pre-arranged ride;

Driver must only entertain customers that made a request using online-enabled application which is TNC accredited and provided;

Driver is not allowed to pick up passengers from the airport unless approved or authorized by airport management;

LTFRB prescribed identification card must be displayed during trips;

Passengers must be insured with personal accident insurance providers, which are LTFRB accredited;

Operators and drivers must comply with the government issued requirements.

Tips For Legally Doing Business In The Philippines

Entrepreneurs who want to legally do business in the Philippines should start with exploring some viable options. A businessman just cannot jump into a business without familiarizing its technicalities. There are some things you need to take into consideration before you can operate your business. 

You need to start with knowing the types of business ownership under the Philippine law: 

1. Corporation 

This type of business structure has five owners or more and they are referred to as shareholders. There are two types of corporation: stock corporation and non-stock corporation. With stock corporation, the capital is divided into shares and distributed to the investors. In turn, investors receive allotments and dividends, which will be based on the numbers of shares they have within the corporation. 

A non-stock corporation is intended for public purposes and issuing shares of stock is already out of the picture. This corporation’s purpose is usually cultural, educational and charitable. 

2. Partnership 

There are two or more individuals involved in this type of business structure. This is why they are called partners according to the Civil Code of the Philippines. The partnership can either be a general partnership or a limited partnership. Partners in a general partnership only have a limited liability for the financial obligations while a limited partnership requires one person to have unlimited liability while the rest have liabilities based on their capital contribution amount. 

3. Sole Proprietorship

As the name implies, this business structure is fully controlled and owned by an individual, which will also enjoy the profits and handle the liabilities of the business. For a sole proprietorship to be in effect, the owner must apply for a business name. It is also the proprietor’s obligation to register with the Department of Trade and Industry (DTI). 

Important Things To Consider For The Business To Run Smoothly: 

Your business cannot be considered legal without registering it with the Bureau of Internal Revenue. Make sure you register your business to the Revenue District Office (RDO) where your business is located. You will also need to secure a Certificate of Registration (COR) and Authority to Print (ATP) for your official receipts to be printed. You should also keep in mind that only printers accredited by BIR will be acknowledged. The official receipts should show that it is BIR accredited. Even books of account must bear BIR stamp. 

Aside from BIR, you should also register your business and employees with the Social Security System (SSS), Home Development Mutual Fund (Pag-ibig) and Philippine Health Insurance (Philhealth). These government entities will also require you to submit reports. It is imperative that you register newly-hired employees with these government agencies as well. 



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